3 AUG 2014, Sunday

• Interesting after a long slow grind up, the market took a quick drop.  The most recent 4 days basically took back all of June and July's climb upward.
• For quite some time now, the market has been respecting the green channel since 2011.  And most recently, the white channel from 2013.  If it's going to continue to respect the white channel, we should be watching the area from 1915 down to 1890. to see if it is.  
• In addition, I've highlighted the areas and indicator readings where the white channel was respected over the past year.  In each case, the market closed at least one day below the 90 day moving average (MA) depicted as a purple line and then got it's legs.
• Inflection point...time to see if the 2013 market personality is still here.  Does the white channel save the day and then on to new highs against the green and white channels again?  Or ,will the rising 200MA rise up in time to provide support.  Or, do we fall to the green channel as it continues upward toward 1800?
• Fact is, I don't know.  No one does.  However, I do know what I'm watching for.